Parliament to discuss fund liquidation law and 2027 budget this week; interim payments up to 1 million TL available

The Turkish Grand National Assembly will discuss this week a bill regulating investment funds that the Capital Markets Board (CMB) decided to liquidate on September 17. The proposal, approved by the Planning and Budget Commission on October 14, was moved to the General Assembly ahead of the Turkish Red Crescent Law Proposal.

According to the regulation, shareholders with a net investment amount below 1 million TL will be able to receive interim payments equal to their investments; for those with 1 million TL and above, the ceiling will be fixed at 1 million TL. The law also aims to recover amounts that were unlawfully withdrawn from the funds' assets and to collect losses from those responsible.

Following Tera Portfolio Management and Compass Portfolio Management's failure to reimburse investors last month, approximately 1.5 trillion lira (30.3 billion dollars) had flowed out of the fund sector. This was not the first shock of this magnitude for the sector: during the 2001 crisis period, legal regulations also intervened in investment fund liquidations.

The Parliament's agenda for the same week also includes the 2027 central government budget. ANKA News Agency reported the development.